The Reserve Bank of India’s former Deputy Governor R Gandhi has been named as additional director on Yes Bank board, informed the private lender.
Making this announcement of Tuesday, the lender informed that the appointment is valid for a period of two years with effect from May 14, 2019 to May 13, 2021 or till further orders, whichever is earlier.
The announcements was made by the bank during a filing to stock exchanges.
Gandhi was RBI Deputy Governor during April, 2014 and April, 2017.
The appointment has been made in adherence to sub-section (1) of Section 36 AB of the Banking Regulation Act, 1949, said the bank.
As per the above mentioned section the RBI can appoint additional directors “if the Reserve Bank is of [opinion that in the interest of banking policy or in the public interest or] in the interests of the banking company or its depositors it is necessary so to do, it may, from time to time by order in writing, appoint, with effect from such date as may be specified in the order, one or more persons to hold office as additional directors of the banking company.”
Gandhi’s appointment comes in response to the bank reporting a loss of Rs 1,507 crore for the March quarter, driven by a nine fold inflation in provisions. Rating agencies ICRA and India Ratings both have downgraded the long-term ratings of the bank.